It seems a little unfair, as part of the problem is that the Cypriot Banks lent money to the Greek Government and therefore made losses in the plan to relieve Greek debt. They have already helped prop up the Euro. It is equivalent to the current practice of EU countries(eg UK, Germany) borrowing at lower rates and lending it to other EU countries(eg Greece, Spain, Italy) at those low rates.
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And the value of the debts owed by the Greek government was cut in a debt relief exercise undertaken last year. It might have helped Greece, but the Cypriot banks were hit.
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